Blackpool has been named as the UK’s best budget staycation destination

It was joined in the top 10 list of cost-effective holiday hotspots by other iconic seaside towns, including Brighton and Skegness, as well as Britain's first seaside resort, Scarborough.

When it comes to city breaks, Cardiff, Liverpool, and Newcastle were considered the best value options by travellers polled, with each of them scoring highly when it came to affordable meals out, accommodation and transport.

Meanwhile, three holiday favourites from the north of England, Morecambe, Whitby, and York, rounded off the top 10.

Graham Donoghue, chief executive of holiday letting agency Sykes Holiday Cottages, which commissioned the research, said: “Blackpool is an iconic British holiday destination.

"Not only does it encapsulate the best of a quintessential seaside staycation, but it also offers great value for money.

“With the rising cost of living continuing to put a squeeze on budgets, many holidaymakers will be looking to see where they can get the best value for money on holidays this year.

"Making travel plans closer to home could be an ideal solution, as it is easier to stick to a holiday budget while still spending quality time with loved ones.”

The research also revealed 27 per cent of holidaymakers are more likely to book a staycation this year due to the rising cost of living.

Nearly a quarter (23 per cent) have already booked their staycations for 2023, while 34 per cent are planning to get one organised.

A massive 94 per cent said it is important to them that they are getting good value for money when booking a holiday, and 75 per cent want to get the best bang for their buck with accommodation.

However, 26 per cent of those who are planning to go away this year said their holiday kitties have decreased because of the rising costs they are contending with.

The study, conducted via OnePoll, found the average traveller will set aside nearly £1,800 for their trips this year.

To help keep within their budgets, one in three will book their getaways out of peak seasons, while 29 per cent will spend more time researching the best deals.

And 28 per cent will book self-catering accommodation so they can keep the cost of meals down while away.

But despite having less money than usual to go away with, 64 per cent will not let it deter them from having a memorable trip.

Graham Donoghue added: “Despite the cost-of-living crisis, millions of Brits are still eager to get away in 2023, with many opting to stay in the UK instead of heading abroad on their holidays to keep costs down.

“But who can really blame them when there is much to love about going on staycations?

"Throughout the UK, we are spoilt for choice when it comes to a diverse range of landscapes, activities, and history to enjoy, offering multiple opportunities to create lifelong memories for all groups of travellers, no matter what your budget is.”

To help holidaymakers looking for an affordable getaway this year, Sykes Holiday Cottages has compiled a roundup of the UK's best value destinations alongside tips and insights on how to stick to a budget.

10 best budget staycation hotspots

1. Blackpool2. Cardiff3. Liverpool4. Brighton5. Skegness6. Scarborough7. Newcastle8. Morecambe9. Whitby10. York